What is fiduciary liability insurance and why does a Georgia company with a 401k need it?

Fiduciary liability covers plan administrators and the company from claims by plan participants that the 401k, pension, or benefits plan was mismanaged. ERISA makes plan administrators personally liable for investment selection, fee disclosure, and plan document compliance failures. A company with a 401k plan and no fiduciary liability coverage has exposed its HR director, CFO, and board to personal liability for any investment losses or procedural failures. It is one of the most overlooked gaps in Georgia companies with 20 or more employees.